M&G's Calich buys into Argentine government bonds as peso plummets

Offering decent compensation for risks

M&G's Claudia Calich has initiated a position in Argentine government bonds on the grounds the bonds have dropped to levels that "offer decent compensation for the risks".

Calich, manager of the £942m M&G Emerging Markets Bond fund, added a 1.5% position in local currency government bonds in Argentina in May having exited holdings in Q1, although she maintained other positions Argentina. The manager said the position helped to mitigate the effect of the plummeting peso on the fund, adding it was "an example of how we seek to evaluate if periods of increased volatility may offer potential buying opportunities". Argentina has seen its currency in freefall following a change to its inflation target and a central bank rate cut earlier this year, which dente...